Mar. 9, 2023
March 9, 2023 Dear SEC, I am writing to express my urgent concerns regarding the recent rule proposal (File Number S7-31-22) on order competition and its potential impact on household investors. As an active and informed household investor, I have witnessed firsthand how anticompetitive behavior harms individual investors and undermines the integrity of the securities market. While I support the proposal's objective to increase transparency and fairness in the market, I believe that it does not go far enough to address the root causes of anticompetitive behavior. Institutional investors have been able to take advantage of the current system by trading retail orders amongst themselves without other market participants being able to see or compete for these orders. This creates an uneven playing field and harms individual investors who do not have the same resources or access as institutional investors. Therefore, I urge the SEC to take immediate and decisive action to address the institutional investors who have benefited from anticompetitive behavior. The SEC should require these investors to disclose their trading activities to ensure that they are not engaging in anticompetitive practices or limit their ability to trade retail orders altogether. The agency must also take a more proactive approach to identify and punish anticompetitive behavior, including rigorous enforcement of this proposed rule and ensuring fines are structured to always disincentivise illegal activities by exceeding the profits gained from the criminal activity. I urge the SEC to prioritize the protection of household investors and ensure that the securities market is fair and accessible to all investors. The current system has allowed institutional investors to act as foxes guarding the henhouse, and it is time for the SEC to hold them accountable for their actions. In conclusion, I urge the SEC to strengthen the proposed rule on order competition and take immediate action to address institutional investors who have engaged in anticompetitive behavior. The SEC must act with urgency to protect the interests of household investors and restore integrity to the securities market. Thank you for your consideration. Sincerely, An American Household Investor